Hasbro Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Hasbro (NASDAQ:HAS) will unveil its latest earnings on Monday, October 22, 2012. Hasbro is a global company that designs, manufactures and markets games and toys to children and families.

Hasbro Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.20 per share, a decline of 5.5% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.31. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.20 during the last month. For the year, analysts are projecting net income of $2.82 per share, a rise of 2.9% from last year.

Last quarter, the company came in at profit of 33 cents per share against a mean estimate of net income of 23 cents per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by 3 cents.

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A Look Back: In the second quarter, profit fell 25.2% to $43.4 million (33 cents a share) from $58.1 million (42 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 10.7% to $811.5 million from $908.5 million.

Stock Price Performance: Between July 23, 2012 and October 16, 2012, the stock price rose $3.19 (9.1%), from $35.19 to $38.38. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 16, 2012, when shares rose for 11 straight days, increasing 8.1% (+$2.88) over that span. It saw one of its worst periods between June 19, 2012 and June 27, 2012 when shares fell for seven straight days, dropping 7.2% (-$2.51) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.56 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.78 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 15.5% to $838.7 million while assets rose 6.3% to $2.15 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 3.4% in the first quarter and dropped again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with seven of 10 analysts surveyed giving that rating.

Wall St. Revenue Expectations: Analysts predict no change in revenue from the year-earlier quarter to $1.38 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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